Microprocessor maker Advanced Micro Devices Inc. warned that its second-quarter sales would be 9% below the first quarter, missing Wall Street forecasts.
The Sunnyvale, Calif.-based company, the No. 2 computer chip maker after Intel Corp., said it expected revenue of $1.22 billion for the second quarter, up 52% over the same period last year but below the $1.31 billion analysts had expected, according to Thomson Financial.
The sales report comes as Santa Clara, Calif.-based Intel has slashed prices on many of its chips to try to regain sales momentum from AMD, which had bested its larger rival in recent quarters with chips that ran faster and more efficiently.
AMD said sales of mobile and desktop processors had slipped in the second quarter.
The company's shares fell 7 cents to $23.83. AMD plans to report its quarterly results July 20.